Employers continue to face skills shortages, with the cost of training existing staff and challenges with recruitment among the contributory factors according to the latest Ibec Skills survey.
The business lobby group’s research finds that 82 per cent of the 281 chief executives and HR leaders surveyed say a shortage of skills in particular areas is an issue for their companies with as many as 50 per cent in the professional services sector saying the problem is impacting on their ability to expand.
Ibec says the finding is more evidence that use of the National Training Fund should be ramped up as employers seek to keep up with changing technology and the development of AI.
More than three-quarters of the companies surveyed, 78 per cent, say they have provided job specific training to existing staff members during the past year with 95 per cent saying they consider such training important.
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Most employers say they rely on in-house training or industry body programmes due to cost or other factors, with just 51 currently availing of courses run by universities or other educational institutions.
Ibec says that the rate of participation in lifelong learning projects in Ireland continues to improve and currently stands at 16 per cent. But that this is half the figure for Denmark and even further behind the 42 per cent rate for Sweden.
It calls for the Government to cap the amount in the National Training Fund, which it says is on course to reach €3 billion by 2023, to ensure employers are better supported in their efforts to train staff and foster innovation and creativity.
The research suggests that, as things stand, almost two-thirds of companies have dedicated budgets for training and skills development, with the number approaching 80 per cent in the professional services and health/education sectors.
The figure drops to 46 per cent in organisations employing fewer than 50 people which Ibec cites as evidence that smaller companies are being disadvantaged by a lack of support.
The report “serves as a critical wake-up call that the status quo in workforce development is no longer enough to sustain Ireland’s competitive edge”, says its author Meadhbh Costello, senior executive for skills and innovation policy with the employer group.
“With talent shortages growing and internal resources stretched thin, it is deeply concerning that firms who are actively contributing 1 per cent of their payroll to the National Training Fund are not able to access the supports they need to prepare their workforce for the future.
“With a €3 billion surplus projected for the National Training Fund, there is no excuse for underinvestment. Government must now move decisively to unlock these employer-contributed funds and jump-start training and lifelong learning.”
